The cryptocurrencies believers are having a tough time lately. Needless to say, the stocks markets have been witnessing the impacts of the global factors which are pulling down the level of equities. However, the cryptocurrency space is also disappointing the market players. The price of Bitcoin witnessed the strong downtrend because of the concerns that the regulatory scrutiny might increase which would prompt the issuers of the initial coin offerings for the liquidation. The steep fall was not only witnessed in the Bitcoin but also in the alternative coins as Ether as well as Litecoin also witnessed the decline. On November 16, 2018, the Securities and Exchange Commission or SEC made an announcement regarding the first civil penalties. These penalties were two cryptocurrency companies which failed to register the initial coin offerings as securities.
Paragon Coin, as well as Airfox, would need to shell out US$250,000 as penalties so that the investors can be compensated and, not only this, they would need to do the registration of the digital tokens as securities. The market players have shown their serious concerns regarding the strong downtrend in the cryptocurrencies. According to them, the cryptocurrency would continue to witness unfavourable momentum.
In 2018, the Bitcoin has managed to garner the attraction of the institutional investors. Recently, Fidelity Investments had made an announcement regarding the launch of the new company for their institutional clients who would be able to store as well as trade the cryptocurrency assets. As per the Fidelity, the company plans to make Bitcoin easily accessible to the investors which include family offices, market intermediaries as well as hedge funds. The company also stated that it would continue to experiment as well as invest, on a long-term basis, in the activities which would help the clients in using as well as understanding the emerging asset class. They also added that they had been exploring digital assets as well as blockchain from the past several years and the efforts have helped the company in understanding as well as advancing the thinking.
As per the recent edition of Fidelity’s survey, the company had found that 70% of the institutional investors have reflected the positive news related to the new asset classes and stated that they would emerge on the back of advancing technologies. Because of the increased interests towards the digital currencies, the institutional investors are planning to enter the market.
From the January peak, the cryptocurrency industry witnessed the loss of over US$660 billion in terms of value, as per the market participants. Additionally, some of the market players are also reducing their price targets.
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